In the Energy Independence and Security Act of 2007, the ?xml:namespace>US government mandated that annual consumption of renewable fuels, which includes biofuels from ethanol and biomass diesel, must reach 36bn gal by the year 2022.

However, Hogan said he doubted the ability of the US to reach the 36bn-gal target, citing the fact that 16bn gallons must be made from cellulosic ethanol, which is based on an ‘unproven’ technology.

If fully executed, Hogan said, the renewable fuels mandate would demand for petroleum products and lower demand for crude oil by up to 15%, based on current demand levels.